As a measure to mitigate the economic effects as a result of covid 19 pandemic, the implementation of the Tax Law (Amendment) Act, 2020 which came to effect from 25th April, 2020 made the following changes:
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- Reduction of Personal Income Tax top rate (PAYE) from 30% to 25%
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- 100 % Tax Relief for persons earning up to Ksh. 24,000
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- Reduction of Resident Corporate Income Tax rate from 30% to 25%
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- Reduction of Turnover Tax rate for SMEs from 3% to 1%
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- Immediate reduction of VAT rate from 16% to 14%
The remission timelines are as follows:
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- Value Added Tax (VAT by 20th of every month
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- Pay as you Earn (PAYE) by 9th of the month
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- Residential Rental Income Tax by 20th of every month
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- Withholding Value Added Tax (WVAT) by 20th of every month
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- Withholding Tax (WHT) by 20th of every month
